BILL NUMBER: SB 284 INTRODUCED
BILL TEXT
INTRODUCED BY Senator De León
FEBRUARY 14, 2013
An act to add and repeal Sections 17053.86 and 23686 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 284, as introduced, De León. Income taxes: credits:
contributions to education funds.
The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.
This bill, under both laws, for taxable years beginning on or
after January 1, 2014, and before January 1, 2017, would allow a
credit equal to a certain percentage of a contribution to the College
Access Tax Credit Fund, established by this bill, for specified
education purposes, as provided. This bill would specify that the
aggregate amount of credit that may be allocated under both laws
shall not exceed $500,000,000 for each calendar year, and would
require the Treasurer to perform certain duties with regard to
allocating and certifying the tax credits allowed under these
provisions.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17053.86 is added to the Revenue and Taxation
Code, to read:
17053.86. (a) (1) For taxable years beginning on or after January
1, 2014, and before January 1, 2017, there shall be allowed a credit
against the "net tax," as defined in Section 17039, an amount equal
to the following:
(A) For each taxable year beginning on and after January 1, 2014,
and before January 1, 2015, 60 percent of the amount contributed by
the taxpayer 2014 taxable year to the College Access Tax Credit Fund,
as allocated and certified by the Treasurer.
(B) For each taxable year beginning on and after January 1, 2015,
and before January 1, 2016, 55 percent of the amount contributed by
the taxpayer 2015 taxable year to the College Access Tax Credit Fund,
as allocated and certified by the Treasurer.
(C) For each taxable year beginning on and after January 1, 2016,
and before January 1, 2017, 50 percent of the amount contributed by
the taxpayer 2016 taxable year to the College Access Tax Credit Fund,
as allocated and certified by the Treasurer.
(2) Contributions shall be made only in cash.
(b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section and Section 23686 shall not exceed
five hundred million dollars ($500,000,000) for the 2014 calendar
year and five hundred million dollars ($500,000,000) for each
calendar year thereafter.
(2) (A) For purposes of this section, the Treasurer shall do all
of the following:
(i) On or after January 1, 2014, and before January 1, 2017,
allocate and certify tax credits to taxpayers under this section.
(ii) Establish a procedure for taxpayers to contribute to the
College Access Tax Credit Fund and to obtain from the Treasurer a
certification for the credit allowed by this section.
(iii) On or after January 1, 2014, and before January 1, 2016,
notify the taxpayer within seven days of receipt of a contribution of
the contribution amount that is eligible for a credit. If the
allocation and certification would be limited or denied because the
five hundred million dollar ($500,000,000) cap set forth in paragraph
(1) of subdivision (b) has been reached, the Treasurer shall offer
the taxpayer a choice between either the return of the contribution
or the receipt of the certification for the next taxable year.
(iv) On or after January 1, 2016, and before January 1, 2017,
notify the taxpayer within seven days of receipt of a contribution,
the contribution amount that is eligible for a credit. If the
allocation and certification would be limited or denied because the
five hundred million dollar ($500,000,000) cap set forth in paragraph
(1) of subdivision (b) has been reached, the Treasurer shall offer
the taxpayer the option of a return of all of the contribution or the
portion of the contribution that would be limited, as applicable.
(v) Provide to the Franchise Tax Board a copy of each credit
certificate issued for the calendar year by March 1 of the calendar
year immediately following the year in which those certificates are
issued.
(c) (1) In the case where the credit allowed by this section
exceeds the "net tax," the excess may be carried over to reduce the
"net tax" in the following year, and succeeding five years if
necessary, until the credit is exhausted.
(2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
(d) (1) The College Access Tax Credit Fund is hereby created as a
special fund in the State Treasury. All revenue in this special fund,
upon appropriation by the Legislature, shall be allocated to the
Student Aid Commission for purposes of awarding Cal Grants to
students pursuant to Section 69432.75 of the Education Code.
(2) The tax credit allowed by subdivision (a) of this section and
subdivision (a) of Section 23686 for donations to the College Access
Tax Credit Fund shall be known as the College Access Tax Credit.
(e) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
SEC. 2. Section 23686 is added to the Revenue and Taxation Code,
to read:
23686. (a) (1) For each taxable year beginning on or after
January 1, 2014, and before January 1, 2017, there shall be allowed a
credit against the "tax," as defined in Section 23036, an amount
equal to the following:
(A) For taxable years on and after January 1, 2014, and before
January 1, 2015, 60 percent of the amount contributed by the taxpayer
during the 2013 taxable year to the College Access Tax Credit Fund,
as allocated and certified by the Treasurer.
(B) For taxable years on and after January 1, 2015, and before
January 1, 2016, 55 percent of the amount contributed by the taxpayer
during the 2014 taxable year to the College Access Tax Credit Fund,
as allocated and certified by the Treasurer.
(C) For taxable years on and after January 1, 2016, and before
January 1, 2017, 50 percent of the amount contributed by the taxpayer
during the 2015 taxable year to the College Access Tax Credit Fund,
as allocated and certified by the Treasurer.
(2) Contributions shall be made only in cash.
(b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section and Section 17053.86 shall not
exceed five hundred million dollars ($500,000,000) for the 2014
calendar year and five hundred million dollars ($500,000,000) for
each calendar year thereafter.
(2) (A) For purposes of this section, the Treasurer shall do all
of the following:
(i) On or after January 1, 2014, and before January 1, 2015,
allocate and certify tax credits to taxpayers under this section.
(ii) Establish a procedure for taxpayers to contribute to the
College Access Tax Credit Fund and to obtain from the Treasurer a
certification for the credit allowed by this section.
(iii) On or after January 1, 2015, and before January 1, 2016,
notify the taxpayer within seven days of receipt of a contribution of
the contribution amount that is eligible for a credit. If the
allocation and certification would be limited or denied because the
five hundred million dollar ($500,000,000) cap set forth in paragraph
(1) of subdivision (b) has been reached, the Treasurer shall offer
the taxpayer a choice between either the return of the contribution
or the receipt of the certification for the next taxable year.
(iv) On or after January 1, 2016, and before January 1, 2017,
notify the taxpayer within seven days of receipt of a contribution,
the contribution amount that is eligible for a credit. If the
allocation and certification would be limited or denied because the
five hundred million dollar ($500,000,000) cap set forth in paragraph
(1) of subdivision (b) has been reached, the Treasurer shall offer
the taxpayer the option of a return of all of the contribution or the
portion of the contribution that would be limited, as applicable.
(v) Provide to the Franchise Tax Board a copy of each credit
certificate issued for the calendar year by March 1 of the calendar
year immediately following the year in which those certificates are
issued.
(c) (1) In the case where the credit allowed by this section
exceeds the "tax," the excess may be carried over to reduce the "tax"
in the following year, and succeeding five years if necessary, until
the credit is exhausted.
(2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
(d) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
SEC. 3. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.